ResponsibiLiTY as a p RincipLe - Vaillant Group€¦ · s u s t a i n a b l e a n d p r o f i t a b...

Sustainability Report 2013Sustainability Report 2013Sustainability Report 2013Sustainability Report 2013

ResponsibiLResponsibiLResponsibiLResponsibiLResponsibiLiTYTYTYas a pas a pas a pRRRincipincipincipLeeee

sustainable and prof

itab

le

gr

ow

th

3 Foreword by the Management Board 4 The Vaillant Group introduces itself 10 Sustainability strategy 22 S.E.E.D.S. magazine

26 Development & Products 40 Environment 48 Employees 58 Society

66 Principles of reporting 68 Sustainability key figures 74 Sustainable printing 76 Imprint

VaIllanT GrouP SuSTaInaBIlITy coMPaSS

conTEnTS

Co2 emissions

energy efficiency water consumption

waste accumulation

realised social projects

acceptance rate of social criteria

by suppliers

realised stakeholder

dialogues and interviews

turnover share of green and efficient

productsCo2 emissions

product portfolio

Material efficiency

totalincident rate

employees satisfaction

turnover rate

sickness rate

internal succession rate

average age

average seniority

social commitment

social criteria in supply chain

stakeholder dialogues

logistics

administration Vehicle fleet

travelling

health and safety

employer of choice

production

suppliers appliances

service

Materials spare parts

recycling

Vision and

values

Environment

Society

Development& Products

Employees

ladies and gentlemen,

Two years on from setting transparent and binding sustainability targets, we have made good progress in many areas.

The well-founded, KPI-supported management system under the umbrella of the S.E.E.D.S. programme is making an

impact. Topic areas in which we are not yet on track have been analysed and we have defined specific measures for

improvement.

We have obtained valuable stimuli for developing our strategy by conducting a survey, which involved our internal and

external stakeholders. Their expectations were systematically recorded last year for the first time. our reference groups

attribute the greatest importance to the same areas of action that we ourselves regard as having most influence on our

business activities – such as developing climate and environment-friendly products and conserving resources. The scope

of the most important topics also reflects that the S.E.E.D.S. programme is in line with the main challenges in our core

business.

The award presented to the Vaillant Group sustainability strategy as one of the best three such strategies in Germany

is a particular accolade. Firstly because it shows that we are setting a cross-industry benchmark with the S.E.E.D.S.

programme and secondly because the prestigious jury of the German Sustainability award particularly highlights the way

that the strategy suits our core business – thereby recognising that we are consciously allowing ourselves to be measured

by our responsible production processes and the efficient, resource-conserving operation of our products.

as a family business, we fully understand our duty to use sustainable practices and take this opportunity to reaffirm our

commitment to upholding the Ten Principles of the united nations Global compact. Every year, we use this sustainability

report and detailed documentation that we publish online to report on the progress that has been made in implementing

these principles into everyday practices along the entire value chain.

next year will be marked by the implementation of our strategy. as usual, we will report transparently and comprehen-

sively on the most important developments.

Dr carsten Voigtländer, Dr Dietmar Meister, Dr norbert Schiedeck

Dr carsten Voigtländer chief Executive officer

Managing DirectorSales & Marketing

Dr Dietmar Meister Managing Director Finance & Services

Dr norbert SchiedeckManaging Director Technology

It was 1894 when Johann Vaillant patented his gas-fired bathroom boiler. In doing so, he revolu-tionised German bathrooms as instead of having to arduously heat the bath water in a kettle over a coal-heated stove, the bathroom boiler conducted the task in a closed system. a further revolution followed in 1924 when Vaillant developed the first central heating boiler.

Even today, the Vaillant Group still represents pro-gressive ideas and innovations. For example, in the spirit of Johann Vaillant, the company has in recent years developed the world’s first zeolite heat pump and Europe’s first micro-combined heat and power (cHP) system for single-family homes. The com-pany is still entirely family-owned – and therefore not only committed to innovation but also to values such as reliability and responsibility. These values were also appreciated by Johann Vaillant as an em-ployer: in 1909, he introduced Saturday as a day off and he campaigned to do away with luxury tax on hot water, thus making it accessible to everyone.

from remscheid to the worldToday, the family business offers efficiency tech-nologies, products that use renewable energies and individually combinable systems in over 60 coun-tries and with eight brands under the umbrella of the Vaillant Group. The Vaillant Group is therefore optimally positioned for a future in which heating using renewable energies and efficiency technolo-gies will play a central role.

The Vaillant Group’s core business is the most powerful instrument for promoting the success of the energy revolution, meeting the un climate targets and combating global resource conflicts. More than 40 per cent of all primary energy within the European union is used in and for buildings.

and of this, the lion’s share – around 85 per cent – is needed to heat homes and provide hot water. This offers huge potential – to make savings and therefore to conserve resources and protect the environment.

Conserving resources every step of the wayThe Vaillant Group has an international network of 13 production and development sites located in six European countries and in the People’s repub- lic of china. However, whereas many companies currently produce goods in low-wage countries for the European market, the Vaillant Group takes a different approach: it primarily manufactures products to meet regional demands. For example, in Skalica for Eastern Europe, Wuxi for china and remscheid for central Europe. This means, for instance, that gas-fired boilers do not have to be transported thousands of kilometres by road – and therefore have the lowest possible carbon footprint. This is not something that can be taken for granted in today’s globalised economy.

The company sites are structured on the basis of combined competencies. Expertise and the production of specific components are focused at selected sites and centres of expertise for indi-vidual technologies are created – including in the development departments. Teams of experts make new product generations more efficient than ever. Johann Vaillant would have liked this.

140 years have passed since Johann Vaillant founded his master-craftsman installation business in a small half-timbered house in remscheid. What began in Bergisches land in 1874 is now a company with more than 12,000 employees and a globally leading provider of intelligent and energy-saving systems for comfortable living environments.

140 yEarS oF rESPonSIBIlITy

The Vaillant Group introduces itself4

Johann Vaillant lays the foundation stone for today’s Vaillant group, which is still 100 per cent family- owned.

1874

belper

nantes

bergaraVitoria

gelsenkirchen remscheid

bergheim

roding

hamburg

bozüyük

wuxi

C H I N A

Vaillant takes over the british hepworth group. the brands of the new group continue to be marketed separately.

2001

the Vaillant group acquires the majority interest in the turkish heating and air-conditioning specialist türk demirdöküm fabrikaları.

2007

ecopower 1.0, the first micro-Chp system for detached and semi-detached houses, receives the german sustainability award as the most sustainable product.

2011

s.e.e.d.s. is selected as one of the best three sustainability strategies in germany within the scope of the german sustainability award.

2013

The Vaillant Group introduces itself 5

trenčín skalica

The Vaillant Group introduces itself6

The Vaillant Group introduces itself 7

Intelligent and future-oriented: a heating system that can be intuitively controlled and precisely managed, and that can be combined with solar panels on the roof or a heat pump, thus enabling homeowners to be less dependent on fossil fuels. The Vaillant Group offers these kinds of systems under its green Vaillant brand. and this brand truly is green: renewable energies, innovative technolo-gies and customised system solutions give custom-ers the benefits of highly efficient, energy-saving systems. Premium products for customers with the highest demands in terms of innovation, conve-nience, design, sustainability and efficiency make up the comprehensive portfolio of the biggest- selling brand from the remscheid-based family business. Vaillant customers love “the great feeling of doing the right thing”.

The Saunier Duval brand group, with its seven brands, is an important part of the Vaillant Group’s world of products. The Group operates under the brands Saunier Duval in France, Spain and austria, awb in the netherlands, Bulex in Belgium,

DemirDöküm in Turkey, Glow-worm in the united Kingdom, Hermann Saunier Duval in Italy and Protherm in Eastern Europe, and specialises in meeting the demands of the high-volume, mid-price segments. The Saunier Duval Group’s brands are characterised by intelligent, simple and reliable heating technology. They promise to “make your everyday life easy” and offer the most important energy-saving, environmentally-friendly and tried-and-tested technologies, which are kind on custom-ers’ pockets and conserve resources.

With its eight brands, the Vaillant Group ensures that it can offer the optimum solution for almost every need. all of the company’s products are sub-ject to the same high expectations in terms of qual-ity, safety and efficiency – right from the start and along the entire product life cycle. an extensive net-work of skilled technicians and service employees in more than 60 countries ensures that the products continue to meet these high standards during their usage. We therefore work closely with our installa-tion partners – to the benefit of our customers.

BranD VaIllanT

BranD GrouP SaunIEr DuVal

only THE BEST WIll Do

Eight different brands under one roof: the Vaillant Group caters to different segments of the market with the Vaillant brand and the Saunier Duval brand group.

The Vaillant Group introduces itself8SySTEMS

rEnEWaBlE EnErGIES

Heating, air conditioning and new energies – the Vaillant Group offers a full range of heating, ventilation and air-conditioning technologies and thus the perfect system for almost any requirement. In doing so, we are committed to efficient products that can be intelligently controlled so as to optimally use the power offered by renewable energies.

a SySTEMaTIc, InnoVaTIVE aPProacH To THE FuTurE

The Vaillant Group offers an extremely broad range of products: from floor-standing or wall-hung gas-fired condensing boilers, solar panels, photo-voltaic systems, air or geothermal heat pumps and combined heat and power systems for detached, semi-detached or multiple-dwelling homes through to water storage tanks, ventilation systems and control units that conveniently manage all the components. This vast range is driven by concepts and orders: user requirements differ greatly. The product range is designed to provide perfect indoor

climates for Shanghai and oslo alike, for both new-builds and old properties, apartments and semi-detached homes. The heating system must meet needs optimally in order to use as little energy and release as little co2 as possible. The Vaillant Group is therefore committed to providing a range in which products can be flexibly combined.

efficiently combinedBy using efficient individual units and systems, which are based on renewable energies, we are

The Vaillant Group introduces itself 9 HIGHly EFFIcIEnT TEcHnoloGIES

SErVIcE

already able to vastly reduce the primary energy consumption. For example, heat pumps that use heat from the air or the earth can be combined with collectors for photovoltaic or solar thermal energy and supplemented with water storage tanks for peak periods. combined heat and power systems (cHPs) provide both heat and power, thereby reducing the impact of increasing energy prices.

intelligently controlledThe more individual and tailored the heating sys-tem, the greater the importance of the intelligent control system. after all, it is about making the efficient individual components work together as efficiently as possible. This also includes an intui-tive control unit that meets the modern standards of user technology.

optimally usedThe Vaillant Group has several innovative solu-tions that enable optimal use of self-generated power and heat. The eloPacK battery storage system can store the self-produced power from cHPs or photovoltaic systems. Both integrated and separate water storage tanks with a large or medium volume round off the range of products

available. Modern low-energy and passive homes need efficient, convenient ventilation. The new recoVaIr series offers solutions to meet precisely this requirement. The key is to use the primary and self-generated energy optimally in order to reduce carbon emissions and heating costs.

ideally supportedour services cater to the entire product life cycle. These range from commissioning new systems and maintaining existing systems through to providing technical support for installers and spe-cialist partners. Training and technology courses for installers are further key areas. after all, by providing a perfect service we can ensure that our devices are operated effectively and with low emissions.

We are paving the way for a carbon-neutral future in the field of heating. our product strategy is therefore based on efficiency, systems and renew-able energies. This starts today for tomorrow and the future. We have also set ourselves ambitious milestones: by 2020, efficient and renewable technologies should account for 80 per cent of our product revenue. These are the standards against which we measure ourselves.

Sustainability strategy10

as a future-oriented family enterprise, the Vaillant group acknowledges its special responsibility – towards the environment, its employees and society. we firmly be-lieve that business success and commitment to social and environmental standards are inseparably intertwined.

For a high-tech company that develops innovative, efficient solutions in the fields of heating, cooling and hot water, addressing the complex subject of sustainability seems a logical step. our customers, in particular, have clear-cut expectations regard-ing the energy efficiency of our devices. However, the guiding principle of sustainability means more than just marketing particularly energy-efficient products. It dictates that the strategic and opera-tional decisions taken by a company must always consider sustainability-related factors. as such, the basic question must always be asked as to what direct and indirect effects a decision will have on people and the environment – now and in the future.

Sustainability management in the Vaillant Group was initially launched as a strategic core project. These projects have high priority for the company and are instrumental to achieving the goal stated in the Vaillant Group vision: the goal of sustainable and profitable growth.

Group-wide sustainability activities are now centrally coordinated so that sustainability issues become embedded in the normal course of busi-ness by integrating them in processes. The Vaillant Group Sustainability Management department is responsible for this task. The department is part of the Corporate Communications, sustainability Management & politics department and reports directly to the cEo of the Vaillant Group. This department sets sustainability targets in close con-sultation with the Management Board and the in-dividual operational units, systematically monitors their progress and provides impetus for improving company-wide sustainability performance. Further-more, the Group-wide environmental management system is also centrally anchored in order to lever-age the greatest potential synergies.

Several sustainability bodies are involved with implementing and developing the Vaillant Group sustainability strategy. last year, the structure of these bodies was adapted to the needs of the organisation and sustainability management.

rESPonSIBIlITy aS a PrIncIPlE

as a future-oriented family enterprise we set a benchmark in the areas of ecological, economic and social sustainability.Sustainability vision

Sustainability strategy 11

sustainability board Management, Sustainability Management, representatives of the top management levels

Strategic decisions

sustainability ManageMent

Sustainability strategy, initiation and management of activities, success measurement

sustainability foruMsEnvironment forum, health and safety at work forum,

regional forums

Exchanges on best practices and standards

Corporate unitsPurchasing, Development, Production, logistics,

Sales, Service, etc.

operational implementation and professional stimuli

as the most important body, the Vaillant group sustainability board meets once a year. This is made up of the Management Board members, the Sustainability Management team and key senior management representatives. This Board discusses and makes all strategic decisions in the field of sustainability. The Sustainability Management team forwards these to the relevant departments and initiates and manages the sustainability activi-ties. The department manages the regular Vaillant group sustainability forums – the environment forum, the health and safety at work forum and regional forums, which discuss matters relat-ing to resource-optimised production processes, health and safety measures and programmes in the markets. The close cooperation enables good ideas proposed in one plant or sales region to also be im-plemented in other plants or regions. Furthermore, sustainability-related topics are also presented and discussed in specialist bodies, such as at the inter-national Supply chain Manager meeting.

Issues arising from public debate on sustainabil-ity, which we actively support by presenting our position in the debate, regularly flow into the work of the sustainability bodies. In this respect, the company is a member of the Sustainability leader-ship Forum, which was initiated by the German as-sociation of Environmental Management (B.a.u.M. e.V.) and the centre for Sustainability Management (cSM) at leuphana university lüneburg. The Vaillant Group is also a long-time partner of the German Sustainability award Foundation.

By signing the Global compact of the united nations, we have reaffirmed our full responsibility in all dimensions of sustainable management. The initiative requires member companies to recognise basic values in the fields of human rights, labour standards, environmental protection and the fight against corruption, and to put these into practice along the entire value chain. We report annually on the progress we have made in this area.

as a future-oriented family enterprise we set a benchmark in the areas of ecological, economic and social sustainability.Sustainability vision

strategy

Vision

leading aCting

Values

strategic projects

operativeexcellence

e M p l o y e e s


strategic sustainability programme

sustainability in environment employees development & Products society

The Vaillant Group has set ambitious standards in all matters of responsible corporate governance. S.E.E.D.S., an acronym for the strategic fields of focus sustainability in environment, employees, development & Products and society, identifies what the family-run company believes to be the key elements in achieving its sustainability vision. These fields are defined on the basis of a broad understanding of sustainability that addresses the main challenges in our core business. In this regard, the Sustainability Management department makes an important contribution to ensuring the company’s success in the long term. a measure of success that is understood as sustainably in-creasing profitability in conjunction with balanced growth.

our management approachThis project is extremely complex as the Vaillant Group is a modern industrial company that oper-ates internationally. The S.E.E.D.S. targets can only be met through the involvement of all areas of the company. and this can only be achieved through targeted management. We therefore manage our sustainability performance using an established approach: the classic control circle applied to cor-porate management systems.

on the basis of the sustainability strategy 1 , binding and verifiable targets 2 are set for all four fields of focus in the S.E.E.D.S. programme. For example, reducing co2 emissions by 25 per cent in

the Vaillant group has combined all its sustainability activities into one pro-gramme. under the name s.e.e.d.s., we set binding, verifiable targets in the fields of focus environment, employees, development & products and society, develop specific measures based on these targets and continuously monitor the results. transparently and group-wide.

a nEVEr-EnDInG cyclE


Sustainabilitytargets

Sustainabilityactivities

Sustainabilitystrategy

review

Measurement of performance

4

5

1

2

3

the field of environment. all relevant departments such as Purchasing, Production, logistics, Sales, Service and Quality then define and implement operational measures 3 in order to achieve these targets. However, sound management also re-quires accountability in order to be able to verify the effectiveness of the measures employed. This is achieved by defining key performance indica-tors (KPIs) and target values 4 for all targets and sub-targets within the fields of focus. Every quarter, we survey all relevant data on a Group-wide basis to calculate the individual KPIs. These are then brought together in a central control tool, the Vaillant Group Sustainability Scorecard. When in-terpreting the figures, we take into account specific

factors such as changes to production capacities and current production volumes. We can therefore determine specific KPIs. By comparing figures from the same period in the previous year against the long-term targets during the annual review 5 , we are able to gain an accurate picture of the current state of our sustainability performance.

as a result, S.E.E.D.S. constantly provides transpar-ency and enables us to make adjustments where there is room for improvement. In this way, we are constantly developing our sustainability strategy and refining or reinitiating targets and individual measures – with the cycle beginning again. So that we always know if we’re on the right path.

s.e.e.d.s. control circle

Materiality Matrix

systems and processes

sustainabilitytargets

s.e.e.d.s.control circle

en iso


reducing co2 emissions by 25 per cent, lowering the number of accidents at work to zero, imple-menting the Ten Principles of the Global compact and increasing the sales share of high-efficiency products to 80 per cent – these are just some of the Vaillant Group’s 2020 sustainability targets. If we realistically want to achieve these, we need Group-wide control mechanisms. This is where differen-tiated management systems come in. They enable us to control the company’s performance in terms of environmental protection, health and safety and quality.

Benchmarks for corporate management systems are set out in Europe-wide standards. The Vaillant Group regularly commissions independent test insti-tutes to audit the application of and adherence to

these benchmarks as part of a “multi-site certifica-tion process”. The majority of our sites have been certified as compliant with quality standard En ISo 9001 and environmental standard En ISo 14001. The former governs the need for high-quality management standards in a company; the latter the continuous reduction of factors that impact on the environment. and we are just as ambitious when it comes to workplace health and safety. We are currently taking our first steps towards the Group-wide certification of our policies on occupational health and safety in accordance with the interna-tional standard oHSaS 18001 at the end of 2014. The Vaillant Group’s commitment is outlined in its quality management, environmental and occupa-tional health and safety policies, which are publicly accessible to all employees and subject to regular review.

the Vaillant group has set itself ambitious sustainability targets for the years ahead. but how can we actually achieve these? one answer is by employing differentiated management systems and introducing group-wide processes.

METHoD In our SuccESS

En ISo 9001En ISo 14001

oHSaS 18001

sustainable and

pro

fita

bl

e g

ro

wth

Vision and

values

Environment

Employees


Society

15

Further to the management systems and their associated standards, we also use another effec-tive tool for systematically implementing sustain-ability in the company: the Vaillant Group process landscape.

Driving sustainability forward in an international company requires a common language in the form of processes. This is because Group-wide processes are needed to lay down standards that ensure sustainability aspects are taken into ac-count throughout the value chain. There are four major processes within the Vaillant Group. The first is the Group Development Process (GDP), which starts at the product development stage and covers the entire product life cycle through to recycling. The Group Production Process (GPP) describes production steps in a simple, standard-ised and clear manner. The Group Market Process (GMP) guarantees the fulfilment of customer requirements and long-term customer retention.

last but not least, the Group Service Process (GSP) describes the activities of our service tech-nicians and installers.

a great deal of corporate responsibility lies behind these abbreviations. We aim to use these processes to anchor sustainability in all areas of the company in order to conserve resources, protect the environment and conduct business in a socially responsible manner. The Vaillant Group standard for environmentally-friendly product design therefore applies to all our developers. only by considering the entire product life cycle as early on as possible can we really meet our customers’ expectations of our products in terms of environmental impact. It is a complex task as processes ultimately control interaction beyond departmental and national boundaries, but the goal is always the same: to guarantee higher quality and thus ensure sustainability.

Materiality Matrix



En ISo 9001En ISo 14001

oHSaS 18001


en iso

Sustainability strategy


There are few business-related topics that affect more areas than sustainability. as a result, we need not only a clear strategy that points the way and has its success measured by binding targets, but also clarity in relation to the fields of action that are particularly important – both from the company’s perspective and that of its stakeholders. The aim of the materiality analysis was therefore to more precisely define the sustainability issues that are essential to our business and obtain a tool that can be used to adjust the sustainability strategy itself.

a methodical approachThe Vaillant Group adopted a step-by-step ap-proach to analysing the main sustainability issues. First of all, the key issues within the fields of focus Environment, Employees, Development & Products and Society were specified in line with the provi-sions of the S.E.E.D.S. programme. This resulted in a list of the 20 most important sustainability issues based on the projects and activities already under-way. Following this, four subgroups were identified as the primary stakeholders from among the groups

we actively exchange ideas, views and experiences with important stakeholders through diverse forms of dialogue. last year we used a materiality analysis to con-duct our first ever systematic survey of customers, partners, suppliers, employees, owners and other relevant stakeholders. the findings have been directly incorporat-ed into the further development of our sustainability strategy.

THE crux oF THE MaTTEr

Materiality Matrix

Business relevance from the company’s point of view

Bus

ines

s re

leva

nce

from

sta

keho

lder

s’ p

oint

of v

iew

high

extremely high

Value-oriented corporate culture

Sustainable supplier management

attractive employer

regional social commitment

occupational health and safety management systems

customer orientation

adhering to ecological and social standards

Employee development

climate- and environmentally friendly products

Diversity management

Integrity and compliance

Public education Public education on environmental and climate protection

Protection of natural resources in all value-added processes

extremely high


that are relevant to the company – customers/part-ners, suppliers, local authorities / professional com-munity and owners. In a written survey, Vaillant asked these groups to assess the importance of the sustainability issues from a subjective point of view. In addition to this stakeholder survey, interviews were conducted with selected employees from central departments (r&D, Production, Finance, Marketing, Hr, etc.). The results of the written survey and the internal discussions were compiled in the form of a “field analysis”. For this purpose, each of the 20 sustainability issues was evaluated based on the assessment by the stakeholders.

The third step in the materiality analysis consisted of the “business relevance analysis”, which consid-ered the importance of the issues from the point of view of the company. The sustainability issues were evaluated in terms of three dimensions:

risk potential: To what extent do risks arise if the Vaillant Group does not address the issue at all or sufficiently?

Efficiency potential: How can sustainability perfor-mance be made more efficient if the issue is con-trolled and monitored extensively and in a targeted manner?

Differentiation and growth potential: How can we generate business growth or achieve differentiation towards our competitors by tackling issues exten-sively and in a targeted manner?

from info collation to matrix creationThe results of the field analysis and the business relevance analysis are combined and presented in a concise overview: the Vaillant Group Materiality

Matrix. The 20 sustainability issues identified are pooled into focus fields. The higher up an issue is positioned in the matrix, the greater its impor-tance from the point of view of our stakeholders. The further to the right an issue is positioned, the greater its relevance from the point of view of the Vaillant Group. The sustainability issues that possess exceptionally high importance both for the Vaillant Group and its stakeholders are displayed in the upper right corner of the matrix. all of the top issues will be dealt with systematically, with particular focus on those possessing exceptionally high importance.

on the right trackThe most important finding can be seen by simply looking at the Materiality Matrix in graph format: the company basically assigns the same level of im-portance to the individual sustainability issues as its stakeholders. The S.E.E.D.S. programme therefore comprehensibly reflects the expectations of our stakeholders and the central challenges of our core business.

of little surprise yet by no means less relevant is the finding that survey participants perceive the de-velopment of climate and environmentally-friendly technologies as the field of action with the greatest significance for the success of the Vaillant Group. This is an important indicator that our product strategy, which focuses on high-efficiency tech-nologies, renewable energies and smart systems, is making a pioneering contribution to the energy revolution and the way this is shaped. The position-ing of the topic clusters “Employee development”, “customer orientation” and “resource conserva-tion” also further strengthens our determination to continue on the road that we have taken.

Materiality Matrix




en iso

development & productsour goal is to offer our customers energy-efficient and environmentally friendly products throughout the entire product life cycle – from development to purchasing, production and use, and all the way to service and recycling.

80% Turnover of high-efficiency products

–15 % Greenhouse gas emission of the product portfolio

+15 % Material efficiency

Target achieved50% of target value achievedGo-ahead

in the spring of 2011, the Vaillant group set itself the first binding, verifiable targets in all fields of focus within the s.e.e.d.s. programme. these goals are an indication of the direction we shall be taking until 2020. until then, we not only intend to provide transparent information on which targets we are on track with but also on where we need to make adjustments to become even better. detailed sustainability indicators can be found at the end of this report.


environmentProtecting the environment and resources is an important part of the Vaillant Group’s sustainability strategy. We aim to use resources responsibly, to consistently lower co2 emissions, prevent negative influences on the environment and actively use opportunities for improvement.

–25% co2

+20 % Energy efficiency

–20 % Water

–20 % Waste


our SuSTaInaBIlITy TarGETS

sustainable and

pro

fitab

le

gr

ow

th

Environment


Employees

SocietyVision

and values

sustainable and

pro

fitab

le

gr

ow

th

Environment


Employees

SocietyVision

and values

sustainabilitySustainability is an integral part of our corporate culture and strategy. our goal is to take a leading position in key sustainability areas and to serve as a role model.


all percentages refer to the 2010 reference yearand are dependent on volume.

Global compact principles as a living standard*

Strategic orientation of our cSr commitment

Systematic stakeholder dialogue

societyThe Vaillant Group acknowledges its social responsibility. The company makes an active contribution where it operates, for social progress and the welfare of people.

10Target achieved50% of target value achievedGo-ahead

*our target to assign 80 per cent of our total purchase volume to suppliers that recognise the Ten Principles of the un Global compact was reached as early as 2012. We have now gone one step further and already man-aged to meet the next target – 100 per cent – which was originally set for 2020.

employeesour employees form the foundation and the soul of the Vaillant Group. We pursue the goal of being the employer of choice for job applicants and current employees.

0Incidents

Employer of choice


Materiality Matrix




en iso

sustainable and

pro

fita

bl

e g

ro

wth

Vision and

values

Environment

Employees


Society

sustainable and

pro

fitab

le

gr

ow

th

Environment


Employees

SocietyVision

and values

sustainable and

pro

fitab

le

gr

ow

th

Environment


Employees

SocietyVision

and values


Dr carsten Voigtländer, Vaillant Group cEo

“THE STraTEGIc DIrEcTIon oF our SuSTaIn- aBIlITy ManaGEMEnT IS PErFEcTly In lInE WITH our STaKEHolDErS’ ExPEcTaTIonS.”

where does the Vaillant group stand today in terms of achieving its 2020 sustainability targets?

When we set the targets back in 2011, we were aware that we were committing ourselves to a highly ambitious programme – meeting the spe-cific standards is certainly not something we can take for granted. as a result, we are even more satisfied with the first steps that we have taken. a good example is the Group’s water consumption, which we have already reduced by 32 per cent compared to 2010. When the targets were de-fined, we were aiming for a 20 per cent reduction by 2020. The situation is similar with regard to electricity consumption. and also to occupational accidents. Thanks to systematic action taken in the plants, we have been able to further reduce the numbers of accidents, which were already pleasingly low even before these measures.

are there areas that you are not yet satisfied with?

Those who celebrate success must also be self-critical at the right point in time. We still need to improve our waste prevention strategies, for example. Despite our aim to reduce the amount of waste by 20 per cent, we are not currently seeing any change in the figures. an analysis of all sites conducted last year is now showing several areas with promising potential. These kinds of chal-lenges demonstrate that the management system behind the S.E.E.D.S. programme is working and highlights potential areas for improvement.

how important does the Vaillant group regard the systematic stakeholder survey conducted for the first time in 2013?

The survey showed us two things. Firstly, that

the strategic direction of our sustainability man-agement is perfectly in line with the expectations of our customers, partners, suppliers, employees and stakeholders. and secondly that the focus on green and efficient products will become an in-creasingly important factor for our business. and this expressly includes the conditions under which the products are made.

what do you think about the s.e.e.d.s. pro-gramme receiving the german sustainability award?

receiving this award is a great honour for us, not just because the Vaillant Group sustainability strategy was chosen from an outstanding field of participants and named by the jury to be one of the best three in Germany, but also because the strategy has been developed by our own team – without any external advice – and is perfectly aligned to our core business. We are proud of the commitment that our employees show, imple-menting the strategy in all operational areas.

S.E.E.D.S. magazine 22

The s.e.e.d.s. magazine is our way of giving you an insight into selected sustain-

ability projects from the four fields of focus through a mix of features, reports and interviews.

We will also introduce you to the people behind the scenes whose dedication ensures that sustainability

remains a top priority in our company.

Ma

ga

zin

e20

13

deVelopMent & produCts

28 Lighthouse Projects

34 product life cycle36 fuel cell heating 38 it security

26

German Sustainability Award

24

enVironMent

42 Sustainability

Award44 environmental management46 environmental campaigns

40

eMployees

50 Hoppelhasen childcare centre54 employee survey 56 s.e.e.d.s. award

48

soCiety

60 SOS Children’s Villages

58

German Sustainability award24

The Vaillant Group has received the German Sustain- ability award for its sustainability programme S.E.E.D.S. The jury particularly honoured the precision with which the core business strategy was defined.

GErMan SuSTaInaBIlITy aWarD

Consistent and specific

The award is an initiative of the German Sustainability Award Foundation in cooperation with the German Federal Government, the Council for Sustain- able Development, business associa-tions, organisations in civil society and also research institutions. It is a contest between the best. This makes it all the more special that the Vaillant Group has now received the award four times – confirmation for the consistency and wholeheartedness with which it ap-proaches the issue. In 2009 Vaillant was among the top three in the category “Germany’s Most Sustainable Research and Development”, and in 2010 among the top three for its sustainable prod-ucts. In 2011, Vaillant also won the award in the category “Germany’s Most Sustainable Products/Services” with its micro-combined heat and power system ecoPOWER 1.0.

solutions that could be adapted. How- ever, we soon realised that this was not the case. What’s particularly important is a precise analysis of one’s own busi-ness and its core operations.”

A three-member team is now in place, headed by Dr Jens Wichtermann, to co-ordinate the sustainability activities of the Vaillant Group. The German Sus-tainability Award provides recognition and motivation both for the team and for others: “The outstanding position achieved by the Vaillant Group is a ma-jor incentive for the numerous sustainability projects across all our divisions,” says Wichtermann.

a contest between the bestAfter all, the German Sustainability Award is extremely significant. It recog-nises companies that set examples in combining economic success with so-cial responsibility and environmental care and which therefore promote the concept of a sustainable society. The focus is on consistent sustainability management and sustainability issues in brand management. The aim of the award is to encourage companies to act sustainably and to help raise public awareness of the principles of sustainable development.

C onsistent and specific – those are the terms used by the renowned

jury of the German Sustainability Award in describing the Vaillant Group’s sus-tainability strategy S.E.E.D.S. – a strate-gy which earned Vaillant second place in the category “Germany’s Most Sus-tainable Future Strategies 2013 (Group)”. The first prize went to the power utility HSE, while the second prize was shared by the Vaillant Group and SAP AG. About 600 companies had applied for this distinction, which was awarded at a festive gala in November 2013. In its comments the jury men-tioned Vaillant’s consistent and exem-plary sustainability strategy. “Vaillant’s distinctive feature is its sustainability programme S.E.E.D.S. with its binding targets and specific measures that cover the entire value chain,” said the jury.

The sustainability strategy was devel-oped internally within the Group in 2011. It combines all the various sus-tainability activities in a strategic pro-gramme and sets binding, verifiable goals in four focal areas. “A sustainabil-ity strategy can’t be bought off the peg,” says Dr Jens Wichtermann, Director of Corporate Communications, Sustain-ability Management & Politics. “Like other companies, we started by looking elsewhere and checked if there might be

German Sustainability award 25

a celebratory atmosphere: Dr Jens Wichtermann, Director of corporate communications, Sustainability Management & Politics (2nd from the right), accepts the award at the presentation ceremony.

lively discussions: the Vaillant stand at the Sustainability Day in Düsseldorf

High-efficiency portfolio use of

environmentally friendly materials and resources

Implementation of

eco-design standards outstanding

product safety and longevity

DEVEloPMEnT & ProDucTS

Development & Products26

optimisation of

recycling and waste disposal after use

Development & Products 27 s uSTaInaBIlITy In

e nVIronMEnT

e MPloyEES

d EVEloPMEnT & ProDucTS

s ocIETy

SUSTATAT INABLE

AND

PRO

FITATATB

LE

GR

OW

TH

Environment


Employees

SocietyVision

and values

lIGHTHouSE ProJEcTS

Signposts


Development & Products 29

not all markets are equally well prepared for all forms of high-efficiency technologies at the same time. This is because there are so many different requirements, affected by legal frameworks, user habits and living stan-dards. We want to highlight innovative products even in places where there has not yet been a market launch. To do this, the Vaillant Group has created so-called lighthouse Projects, such as that in the Swiss umwelt arena (“Environment arena”).

SignpostsThe Umwelt Arena

(“Environment Arena”) in Switzerland: an

elegant glass exterior and an interior created using

natural materials create a pleasant atmosphere.


Insights: it is not only the architecture that makes the Umwelt Arena so fascinating. The exhibits display sustainability in ways that can be grasped both mentally and physically.


Solar Prize 2012. This visibility can also be integrated into Vaillant’s press and marketing work – one of the aims of the Lighthouse Projects, which are intended to generate awareness of the Group’s technologies and brand. “Our Light-house Projects include a comprehensive package of marketing instruments which we can make available to our national distributors,” says Albert.

The Umwelt Arena in Spreitenbach is the perfect venue for a Lighthouse Project. Not only does its architecture appeal, but also its powerful exhibitions, which are structured into four thematic areas: Life and Nature, Energy and Mobility, Construction and Modernisation, and Renewable Energies. Project initiator Walter Schmid had set himself the goal of creating a space which would truly explore the issues surrounding energy and the environment. In order to attract large numbers of visitors, the organisers wanted to ensure that the exhibitions appealed to the widest possible audience – families, school classes, laypeople and experts. The idea worked. After a good six months, the Umwelt Arena had already attracted over 100,000 visitors.

“This is exactly what we want for our Lighthouse Projects,” says Albert. “We want to be represented on platforms that attract large numbers of visitors; we want to reach multipliers, strengthen partner-ships and take up a proactive position on the market.”

As well as the mixed audience visiting the exhibitions, the Umwelt Arena also attracts numerous construction industry experts. With its generous proportions and seven seminar rooms, the arena serves as a venue for major events and meetings of all sizes, offering space for up to 4,000 people.

Loher adds that the conference facilities at the Umwelt Arena have also been used by Vaillant Switzerland a number of times for events such as panel discus-sions and retailers’ meetings. It gives

The ecoPOWER 1.0 simultaneously produces heat and electricity in a highly efficient and green manner – at the site at which they are used.

power system. The micro-combined heat and power system was the first in Europe to be developed with the needs of sin-gle-family households in mind. In addi-tion to the ecoPOWER family – in its product versions 1.0, 3.0, 4.7 and 20.0 – Lighthouse Projects are also in place for the zeolite heat pump zeoTHERM and for other highly efficient products based on renewable energies. The Lighthouse Projects are intended to open doors. They constitute a new and different way of preparing a market. “The central idea is to have a small number of installations which are highly visible – like lighthous-es,” says Moritz Erdmann, CHP and Photovoltaics Product Manager. The construction and concept of the Umwelt Arena have attracted a huge amount of media attention besides winning nu-merous awards, such as the European

Y ou cannot fail to notice it, and you definitely will not forget it: the

Umwelt Arena (“Environment Arena”) – a glistening black, hexagonal building shaped like a crystal. However, the Umwelt Arena in Spreitenbach just outside Zurich is not just about looks. Its strikingly shaped roof is completely covered with photovoltaic panels and its generously proportioned glass façades allow plenty of natural daylight into the building.

Once inside, the visitor comes face to face not only with an arena for events but also with 45 pioneering exhibitions on the topics of sustainability, renewable energy and nature. Their purpose is to explore how sustainability can be en-sured without compromising on comfort or incurring additional expenses.

“When we heard about the project, we were interested straightaway and started to follow the progress of construction,” says Tobias Loher, Head of Marketing at Vaillant Switzerland. It seemed like a highly promising approach; after a while Vaillant Switzerland approached the Um-welt Arena. “We also decided to exhibit one or two of our products there. We were very keen to be represented and to put something particularly sustainable on show.” The ecoPOWER 1.0 was there-fore selected, a product that is currently available on the Swiss market only in the form of a pilot facility.

“This is precisely what our Lighthouse Projects are about,” says Sebastian Al-bert, Head of Brand Strategy. “Their pur-pose is to showcase highly efficient prod-ucts in markets where those products are yet to be sold.” The Lighthouse Project concept has been in place since spring 2013. “We want to use this concept to strengthen our brands and signal to the market that there is more to us than meets the eye.” The ecoPOWER 1.0, for instance, uses a combined heat and pow-er system to produce heat and power si-multaneously. This makes it far more ef-ficient than even the most advanced


retailers and installers the opportunity to see and find out about the ecoPOWER 1.0 in action. However, this is by no means intended as a covert market launch. The number and duration of installations at the Umwelt Arena are limited. After five years the installations have to be dismantled again.

In the meantime, other Lighthouse Pro-jects have emerged besides the Umwelt Arena. Some are still being prepared while others are already in place. The smart home “Hållbarheten” (“Sustain- ability”) in Malmö, Sweden, features a zeoTHERM heat pump that makes use of the thermal properties of the mineral zeolite. “Our purpose here is to raise the general level of awareness in the market, while paving the way for zeoTHERM and increasing brand awareness,” says Albert.

An ecoPOWER 4.7 is currently installed in Bobruisk, Belarus, in the entrance hall at the head office of one of Vaillant’s ma-jor customers. Not only does this installa-tion strengthen collaboration with the partner, it also supports Vaillant’s brand image as a leader in innovation. By doing this, Vaillant hopes to boost sales within its current portfolio while at the same time promote its CHP technology.

An ecoPOWER 4.7 was installed at the Wasserwerke Zug public utility plant in Switzerland for similar reasons. “We want to familiarise our partners with CHP technology,” says Tobias Loher. “By do-ing this we can demonstrate that com-bined heat and power systems are state-of-the-art systems designed for daily use.”

As it stands, CHP technology is still sub-ject to economic and legal conditions, which make it rather unattractive for Swiss customers. “However, adjustments are expected which will then pave the way for innovative thermal engineering to also be introduced in Switzerland,” says Loher. The market now looks to be ready and the ecoPOWER 1.0 is set to make room for another innovative prod-uct from the Vaillant Group.

what did you find so attractive about the umwelt arena project?For an architect, the opportunity to design a building intended to fasci- nate its visitors is extremely appealing – the design, the engineering and the interior, a building where everything fits perfectly, even the construc-tion and maintenance. It’s the first building that is completely carbon- neutral in the way it was created, using recycled materials. a holistic ap-proach was taken from start to finish, and that’s what made it so exciting.

how significant is sustainability to you as an architect?Sustainability is quite a buzzword these days. For us as architects it means thinking in the long term, thinking holistically and advising builders in such a way that they will still be happy they made the right choice for decades and generations to come. This is true not only in terms of energy, but also in terms of design, layout, maintenance and choice of materials.

but doesn’t a sustainable approach make construction a lot more complicated and expensive? Well, no actually. Sustainability makes construction easier, cheaper and more efficient. It’s important to take a long-term perspective, to think out-side the box and to be creative and courageous. The concrete structure, for instance, has four functions, not just one. It provides support, heats and cools the building, and serves as flooring – in the same way that the roof does not just provide cover, but also generates electricity and has a dominant impact on the design.

the umwelt arena is an energyplus building which produces more than twice its own energy requirement – 203 per cent. how did you achieve that?The roof contributes a lot to this. We chose power-generating roofing which combines the best possible thermal insulation with an optimum supply of heat and energy. We also use the heat, cold and electricity delivered by the exhibited systems. an intelligent, forward-looking energy management system makes use of all the influential variables such as the number of visitors and the weather, besides using the energy available in the heat stores by feeding it back into the interior of the building at the right time.

the umwelt arena has won numerous prizes, including the norman foster solar award 2012. have you noticed any positive repercussions on your work?It’s had quite an impact. We’ve received enquiries from other coun-tries, for instance for events and talks. Sustainable construction is a major topic. However, it would appear that builders still need time to take everything in before sustainable construction becomes possible on a wider scale.

as an architect, where do you see the greatest potential for sustainable construction?The greatest potential lies in wide-scale application. If everyone in construction did their maths first, if they gave some thought to the matter and adopted a long-term approach, then buildings would be different: more holistic and more sustainable.

“Sustainability makes construction easier, cheaper and more efficient”Interview with architect rené Schmid


“It’s had quite an impact. We’ve received

enquiries from other countries, for instance

for events and talks. Sustainable construc-tion is a major topic.”

Outlooks: the exhibits at the Umwelt Arena show how fascinating sustainability can be in the most diverse areas of life.

The designer: the architect René The designer: the architect René The designer: the architect René Schmid worked with his team to Schmid worked with his team to Schmid worked with his team to design the Umwelt Arena. The design the Umwelt Arena. The design the Umwelt Arena. The structure won the European Solar structure won the European Solar structure won the European Solar Prize 2012.

Vast: the architects designed an oval arena with

three lower levels and four upper levels; the central area

holds up to 4,000 people.holds up to 4,000 people.


ProDucT lIFE cyclE

Thought through to the end

We want our products to be fully sustainable, from the beginning to the end of their lifetime. This concerns not

only their energy efficiency, but particularly also the responsible selection of all the materials.

1. Development

Sustainability starts quite early, at the conceptual stage of each product. As well as ensuring maximum

energy efficiency, our engineers pay attention to a responsible choice of materials and designs that easily

allow recycling and repairs.

2. Production

The production process must be laid out in such a way that it releases the lowest possible amount of

CO2, saves natural resources and avoids waste. Vital conditions are created as early as the development

stage. When we purchase parts, we check not only for quality but also for compliance with our environmen-

tal and social standards.

3. Sales

Our Sales department delivers optimum customer service. We want each customer to have the best

possible system for their specific needs. This includes providing comprehensive advice as well as training

our partners in the relevant professional areas. It’s an investment, but it’s well worth it.

2.

1.

3.

Mr betz, where does sustainability start in the life cycle of a product?It starts as early as the product idea. We believe that we have a responsibility from the first draft to the end

of the product’s life. We aim to create material cycles that are as self-contained as possible.

how do you put that into practice?It’s not easy of course – and we’ve still got a long way to go. What matters is that sustainability aspects should be part and parcel of each stage in a product life cycle. This doesn’t happen at the drop of a hat, however, but must be based on well-structured real-life processes and specifications.

what exactly does that mean for the first stage, i.e. development?In order to develop sustainable products, the engineers need tools. our development is based on an estab-

lished process, so that we can ensure everything has been thought out and optimised with a view to sustainability, e.g. in the selection of materials. This process is continuously improved and adapted to suit new requirements. We are particularly keen to ensure that materials are selected carefully and responsibly. We have therefore defined certain environmental, social and qualitative standards for our suppliers.

and does this apply to each stage of the life cycle?Each stage has its own requirements. at the development stage, for instance, we can have a significant impact on the technical efficiency of our devices. When it comes to use and servicing, the key is to ensure that our highly efficient devices are operated in a way that saves energy while making full use of the potential of the relevant technology.

how do you close the circle at the end of the product life cycle? The most important thing is genuinely to see the cycle as a circle and to be aware that what is left at the end must not be waste materi-al, but valuable resources. as I said, this starts at the very first stage when we make sure the devices are designed to allow convenient disassembly, with separable parts and materials that are available in a pure form. This is the only way we can close the circle.


4. Use

90 per cent of all carbon emissions in the life cycle of a gas appliance come from its use. So we want to support users in making the most of their heating systems. Our equipment and systems are therefore highly energy-efficient, intuitive to use and perfectly adjustable to the specific situation of each environ-ment.

5. Servicing

We provide a guarantee that original spare parts are used for our products, even 15 years after a series has been discontinued. We have a well-developed service network to ensure that all our devices are operated efficiently and that emissions are kept low.

6. End of Life

At the end of its life cycle a device must always be easy to disassemble. The design must be recycling-friendly, with components that can be separated, so that any material that has been used can genuinely be turned into raw material for something new, thus closing the circle.

4.

5.

6.

of the product’s life. We aim to create material cycles that are as self-contained as possible. interview with

Hans Betz, Vaillant Group r&D Director


FuEl cEll HEaTInG

The next step

Fuel cell technology is highly efficient, delivering both heat and power and making gas “greener”. Through its involve-ment in the two field tests callux and ene.field, Vaillant is well on its way to reaching market maturity.

Ready to go: in 2014, Vaillant will launch the Europe-wide practical

test ene.field with 140 latest-generation devices.

Development & Products

When it comes to the required primary energy, this heating technology is almost 50 per cent more efficient than the best condensing boilers, emitting about 30 per cent less CO2.

is highly innovative. It requires a lot of patience, a problem- solving mindset and the strength to cope with setbacks – which we also experienced,” says Dauensteiner. Market matu-rity is now within reach.

Dauensteiner is confident that all the hard work will pay off: “Fuel cell tech-nology is very promising and entails an enormous amount of potential.” In solid oxide fuel cells, natural gas is split into carbon dioxide and hydrogen. The released hydrogen ultimately reacts with the oxygen in the air, producing electricity and heat. When it comes to the required primary energy, this heat-ing technology is almost 50 per cent more efficient than the best condensing boilers, emitting about 30 per cent less CO2. Moreover, no losses are incurred in the generation of electricity, neither through conversion nor through trans-port – something that cannot even be said of state-of-the-art power stations. A Vaillant fuel cell heater produces 1 kW of electric power and 2 kW of heat; following some technical im-provements, the general level of effi-ciency is now over 90 per cent. “This is the most efficient gas heating technolo-gy there is,” says Dauensteiner.

A range of energy storage projects such as Power to Gas run by the northern German energy utility E.ON Hanse shows how much further potential there is in innovative fuel cell technology. This is important as the storage of green electricity is seen as a key technology for the energy transition. The idea is quite simple: green electricity – of which there is currently too much in the network and which cannot be used up – splits water into oxygen and hydrogen via electrolysers. Hydrogen can be fed into the gas grid at up to 4 per cent by volume – without any change to the in-frastructure. If, on the other hand, there is not enough electricity during peak times and the resulting demand cannot be met through renewables, a highly efficient reconversion mechanism takes place, thanks to Vaillant fuel cell tech-nology.

Germany has a good infrastructure here. Dauensteiner also sees an addi-tional benefit: the Power to Gas technol-ogy involves an extra stage in which hydrogen can be converted into methane, with this “green” gas then being completely fed into the existing gas grid.

T he technology is ready. Since March 2013 a pilot run of fuel cell

heaters has been in production at our facility in Remscheid. The new genera-tion of heaters is clearly more compact, easier to install and less expensive to produce. It also has a higher level of electrical efficiency than its predecessor.

“We have managed to make quite a few technical improvements,” says Alexan-der Dauensteiner, Project Manager, Field Testing for Fuel Cell Heating. The Callux field test has provided several important insights. Callux is Germany’s biggest field test for domestic fuel cell heaters. The project has been running since 2011 and is supported by partners from the energy and heating industries as well as by the German Federal Minis-try of Transport and Digital Infrastruc-ture. 120 Vaillant units are currently being tested. “The results are very good,” says Dauensteiner. At five per cent, the failure rate is surprisingly low for a field test, and a study by the Ger-man Society for Consumer Research (GfK) has found that user satisfaction is very high at over 66 per cent.

Vaillant’s latest generation of heaters will also feature in a Europe-wide field test – ene.field – in 2014. This involves selling about 140 units to private cus-tomers (single-family and two-family households) in Germany, Austria, France and Denmark. After three years the fuel cell heaters will be replaced by serial products. The project manager has reported a great deal of interest among consumers.

These tests are important milestones on the road to market maturity. “Our aim now is to apply this technology on an industrial scale and to develop sustain-able supply chains,” says Dauensteiner. As quantities increase, the cost of man-ufacturing goes down – both for Vaillant and for the suppliers. Buying the cells from a different manufacturer is not an option, he continues. “Fuel cell heating

Within the scope of Callux, Germany’s biggest nationwide

practical test of fuel cell heating devices for domestic

use, Vaillant was able to make valuable findings with regard to further

developing the technology.

37


IT SEcurITy

It’s our responsibility

a computer magazine had discovered a security gap in the IT system controller of the ecoPoWEr 1.0. The Vaillant Group responded immedi-ately, notifying all its customers and the general public. The issue was resolved within a minimum amount of time.


Certified safety: comDIALOG, a remote diagnosis and control

system, received the VDE stamp in December 2013.

The system controller in question was connected to the Internet via a dynamic DNS. “Any unauthorised access was lim-ited to turning the CHP on and off. So the issue didn’t actually compromise opera-tional safety,” says Jagenburg. Neverthe-less, Vaillant decided to notify customers immediately and recommended not con-necting the system to the Internet for the time being. “The units continued to work without any limitations, but disabling re-mote online access meant a reduction in user convenience.”

As a further immediate measure, it was agreed with the manufacturer of the pur-chased system controller that the device should be secured with a password and that a suitable software update should be made available. “Also, we were very quickly in a position to provide a totally new hardware-based solution, as we had already been working on a new system for our ecoPOWER 20.0,” says Engel-haupt. Jagenburg emphasises that “it is the safest system on the market”. The device communicates with the new hard-ware via a secure SSL connection, and the hardware only connects to the Inter-net via a VPN tunnel. This hardware has been available since August and was upgraded for free for any customers with full maintenance contracts. Moreover, any units delivered since February 2014 come with the new hardware installed by default.

“Obviously, this wasn’t a very nice thing to happen,” says Engelhaupt. After all, it was a new product in a rather sensitive

market. But Vaillant had a very clear pro-cedure in place: “We felt it was important to be open and transparent and, above all, to respond in a way that benefited the customer,” says Dr Jens Wichtermann, Director of Corporate Communications, Sustainability Management & Politics. The general public, partners and custom-ers responded positively to our proactive communication. “This was undoubtedly due to our crisis management process and above all because we were quick to offer a very good solution to the problem.”

While managing this acute crisis, Vaillant also started working with external ex-perts on a strategy to avoid such prob-lems in the future. “We never make the same mistake twice,” says Engelhaupt. “We worked intensively on a general pol-icy and made sure we acquired the nec-essary know-how. IT security had not been one of our core competencies. However, we’ve learnt from this epi-sode.”

The Vaillant Group therefore applied for certification from the German testing and certification institution VDE, with the result that comDIALOG, Vaillant’s system for remote diagnosis, settings and control, became the first smart home product to receive such certification in December 2013. The system, which comprises hardware and a service pack-age, allows service partners to conduct a remote diagnosis and remote control via a web-based platform. Fast, smart and secure.

M ike Jagenburg, CHP Project Man-ager, learned about the problem in

February 2013: the system controller of the ecoPOWER 1.0, which was supposed to allow convenient remote control and maintenance, did not offer full protection against hacking attacks. A person with advanced IT expertise would have been able to log into the system controller of the micro-combined heat and power system over the Internet.

Jagenburg told Swen Engelhaupt, Head of Product Safety and Approval, who initiated the established crisis handling procedures for product safety issues. The Product Safety Team (PST) was convened straightaway, comprising representa-tives of Quality, Research & Develop-ment, Legal Affairs, Communications, Sales and General Management. The PST handled communication with the German Federal Office for Security in In-formation Technology, with customers and with the general public, while also setting up a task force to solve the techni-cal problem.

other aCtiVities in 2013

connecTED AwardVaillant secured first place in a readers’ competition held by the magazine CONNECTED HOME. This award recognises the best brands and products in the area of digital home networks.

The clever way to save energy The clever way to save energy The battery storage system eloPACK can be The battery storage system eloPACK can be ideally combined with a CHP unit or photovoltaic ideally combined with a CHP unit or photovoltaic ideally combined with a CHP unit or photovoltaic system. It maximises personal consumption by temporarily storing any surplus of generated

energy.energy.

Healthy climate Healthy climate Healthy climate The indoor ventilation system recoVAIR The indoor ventilation system recoVAIR The indoor ventilation system recoVAIR

ensures not only a pleasant indoor climate ensures not only a pleasant indoor climate but, thanks to its automatic heat recovery but, thanks to its automatic heat recovery function of up to 98 per cent, also clear function of up to 98 per cent, also clear energy savings.energy savings.

Environment40

EnVIronMEnT

energy and water consumption,

co2 emissions,

comprehensive environmental management for the reduction of

at production and administration sites as well as in logistics

and waste,

Environment 41 s uSTaInaBIlITy In

e nVIronMEnT

e MPloyEES


s ocIETy

SUSTATAT INABLE

AND

PRO

FITATATB

LE

GR

OW

TH

EnvironmentEnvironment


Employees

SocietyVision

and values

Environment42

our plant in the English town of Belper has won the national EEF/EnEr-G Sustainable Manufacturing award 2013. This accolade, awarded to the

most sustainable production plant in the uK, pays tribute to a whole host of measures and dedicated colleagues at the plant.

SuSTaInaBIlITy aWarD

100 per cent responsible

production plant in the UK in January 2014 and was handed the “national EEF/ENER-G Sustainable Manufacturing Award 2013”. “The prize acknowledges the work of the entire team in Belper,” emphasises Borkowski.

The figures submitted by the plant when applying for the award are impressive: compared with respective figures from 2010, by 2012 we had managed to reduce CO2 emissions by 31 per cent, en-ergy consumption by 35 per cent, water use by 56 per cent and waste volume by

that this member of staff from Production was not afraid to point out the safety regulations to an important customer. “Our colleagues at the plant have adopt-ed such tasks as their own,” explains Borkowski. “We have enabled and em-powered them to do this,” adds Marc Dörpinghaus, Borkowski’s predecessor in Belper.

Every single person at the Belper plant is responsible for ensuring sustainability. In recognition of its achievements, the site was voted the most sustainable

A rather telling story: one of our most important customers came to visit

our plant. A member of staff from Pro-duction pointed out – very politely – that the visitor was unfortunately wearing the wrong shoes and therefore would not be able to enter the plant for reasons of safety.

For Dr Jan Borkowski, Plant Manager in the English town of Belper since April 2013, this story makes one thing very clear: every single member of staff in Belper feels responsible. So responsible,

Detailed production work: many different

measures have made production processes more sustainable, such as the switch-over from water to

air for the test procedure.

Environment 43

53 per cent. All that, in spite of the fact that production volumes had actually increased.

For example, between 2010 and 2013, water use reduced by 61 per cent per unit produced. “This translates into a saving of one million litres,” points out Allan Harley, Occupational Safety and Environmental Manager. This was achieved by moving the testing units from water over to air pressure, a process which was completed in May 2014. Be-sides this, water is also reused. Fresh wa-ter is not used until the fourth and final cleaning cycle, for instance.

Implementing the demands for a sustain-able production process is neither quick nor simple. “It entails a huge bundle of many different measures,” explains Harley. We began introducing changes in 2006. “It became evident at the time that we had a problem with waste,” says Harley. 326 tons of waste was associated with 350,000 devices produced over one year. The Six Sigma methodology was drawn upon for the analysis, commented Dörpinghaus. “We adopted and used this methodology to systematically identify our issues; we measured, conducted

analyses, improved specific, targeted areas – and were able to monitor the effects. That was of huge importance.”

The programme Blue4you was used to kick start our systematic efforts to achieve a sustainable and thus perma-nently successful plant. In 2009, we com-menced with a Six Sigma project aimed at saving energy. In 2011 we finally man-aged to achieve one of our aims: reduc-ing landfill waste to zero (see the Vaillant Group Sustainability Report 2011). In the same year, our efforts were given a con-text – and a vision – with the Group-wide sustainability programme S.E.E.D.S.

“The 2020 vision of S.E.E.D.S., which sets out clear targets for the year 2020, has been a fantastic aid. It delivers a strong message,” says Borkowski. This vision had to be translated and broken down to

allow each and every one of us – from plant manager to assembly staff over to cleaning staff – to internalise the fact that we all have a part to play. “It took a while for us to get used to it, but it has now become ingrained in all of us,” says Man-ufacturing Team Leader Chris Howes. And that important customer could of course continue his visit of the plant, as soon as he had the right safety shoes.

The success at the Belper plant is based on a bundle of many

different measures.

no longer visible to laypeople: the finished products are now placed on reusable pallets, concealed in recycled packaging and illuminated by energy-saving lEDs.

44

wednesday, aFTErnoonOffice time to prepare quarterly reports: balanced scorecard report for internal use in the plant and preparation of key indicators for the Vaillant Group Sus-tainability Scorecard. Topics: waste, use of resources, injuries, status of sustainability initiatives, …

thursday, 10 a.M.Teleconference with Brigitte Kruse from Sustainability Management and Envi-ronmental Managers from other plants. Kruse to bring us up to date on sustain-ability management news. Colleagues to report on the status of their projects. Followed by one-on-one meeting with Kruse on the sustainability scorecard data.

friday, 9 a.M.Four-hour training workshop on ergo-nomics standards with production en-gineers: expert coming into the plant to provide information on standards for ergonomic workstations. Second part: assess workstations, specify proposals for improvement.

M artina Kvaltínová has held the posi-tion of Occupational Safety and En-

vironmental Manager at the Skalica plant for six years. Her job is to protect staff health, prevent accidents and achieve sustainability goals under the priority field of the environment. Her busy diary reflects her many tasks – after all, she is the point of contact for a number of staff members and agents: she consults with all the managers in the plant, the people in charge of production, colleagues from other plants, staff responsible for sustain-ability management within the Vaillant Group and, of course, external service providers and state authorities. An extract:

Monday, 8 a.M.The week starts at 7.30 a.m. First appoint-ment at 8 a.m.: safety and environmental training for new members of staff. All the essentials in an hour: basic safety rules, where the new colleagues are allowed to go, what they should do in case of an accident or emergency, how rubbish should be separated, how they should handle the various materials.

Monday, 1 P.M.Appointment with the company doctor. Overview of the general situation in the plant and alterations. This time: a new assembly line has gone into operation. Afterwards, the company doctor will check each individual workstation.

cooperation: Environmental Manager Martina Kvaltínová discusses the control software for lighting and heating in Production with her colleague Jan Samek from the Facility Management department.

Environmental management ensures that the sustainable products manufactured by the Vaillant Group are done so in a sustainable manner. Every plant has a responsible manager; in Skalica, this role is assigned to Martina Kvaltínová.

EnVIronMEnTal ManaGEMEnT

Committed to helping the environment

Environment

tuesday, 10 a.M.Following the daily safety and environ-mental training session: internal audit of the laboratories with colleagues from Quality Assurance. Discuss essential points regarding certification in line with the environmental management standard EN ISO 14001 and the occu-pational health and safety management standard OHSAS 18001. Audit docu-ments, inspect and check laboratories. Afterwards, meeting to discuss and specify improvements.

tuesday, 1 P.M.Quarterly meeting with Plant Manager Peter Kuba and all responsible manag-ers at the plant on quality, safety and en-vironmental management. Information regarding audit findings, state of affairs according to the plant and group score-cards, status of the certification process according to OHSAS 18001 and other running projects. Analyse accident re-port, record improvements. Then up-load recorded measures to the Intranet, send to responsible individuals.

wednesday, 10 a.M.Meeting with service provider on new lighting for Administration. A colleague from Purchasing will also be present. Aims: save energy, improve working conditions. Then building walkabout to identify needs.

45 Environment

“For us, good is not good enough”

Ms Kruse, how is environmental management organised in the Vaillant group?Since 2008, there has been someone responsible for environmental management at every site. until the start

of 2013, environmental management was managed by the Group Quality department, which was also responsible for sustainability activities until 2011. When S.E.E.D.S. was introduced, we took over the reins.

what are the main goals?We want to obtain multi-site certification to En ISo 14001, or in other words a Group-wide certificate for all sites. once the

plant in Bergheim is certified in 2014, we will have achieved this aim. We are also working to certify our occupational health and safety management to oHSaS 18001. But our aspirations do not stop there. For us, good is not good enough: our products

should be sustainably produced and we have therefore defined our own S.E.E.D.S. targets in relation to the environment. These are to reduce co2 emissions by 25 per cent, water consumption by 20 per cent and waste by 20 per cent as well as to increase energy

efficiency by 20 per cent.

what duties do the environmental Managers in the plants have to fulfil in this regard?The Environmental Managers are responsible for on-site implementation. all sites have the same targets regardless of how far they are from achieving them. The Environmental Managers have developed action plans for their respective sites and defined the targets to be hit each year, such as how much water consumption should be reduced in 2013.

how do you manage the work of the eight environmental Managers?We keep in touch regularly via telephone and online conferences, where we discuss topics relating to the head office and other sites. Twice a year, we all attend a meeting at one of the plants. We also check the most important KPIs each quarter and discuss problems.

to achieve the targets, however, you and your colleagues at the various sites need money…yes, of course. Environmental management requires the support of the company management – and it has it. For example, we have been granted longer amortisation periods for environmental investments. cooperation with the Plant Managers is also extremely important as they have to approve budgets and working hours where applicable.

but surely you hit some problems?There are many minor problems that can be resolved locally, but also bigger problems which have to be looked at centrally. For example, our performance in relation to reducing the amount of waste at the sites. By talking to the regional Environmental Managers, we have realised that their options on site are limited. The topic has to be addressed Group-wide. In 2013 we set up a task force that analysed the problem and introduced measures, which take effect right from the procurement stage and along the supply chain. These are things that can’t be implemented overnight. But we’re working on them.

interview with

Brigitte Kruse, Head of Sustainability Management

Environment46

Environment 47

EnVIronMEnTal caMPaIGnS

We make a difference

tres. As a modular set of materials, these media are available to all our sites, each of which can use the relevant motifs to convey messages about the most urgent topics.

recycled papertwelve million opportunitiesThe figure is huge: every year twelve million sheets of paper are used in the Vaillant Group offices in Germany. For copying, printing or writing letters. That’s twelve million opportunities to do something for the environment and con-serve resources.

Since 2013 one particular project has been devoted to investigating whether and how the previously used FSC fresh-fibre paper can be replaced with recycled paper. The change will now take place nationwide in summer 2014 with the result that all paper for photo-copying and printing will then be made

communication campaign every kilowatt countsEvery one of us can do something. Think. Support. Make a difference. A Group-wide communication campaign conveys this message to the production staff. “Every kilowatt counts” is one of the slogans featured on a striking, rather tongue-in-cheek poster. What you don’t need should be switched off. Taps should be turned off, electric devices shut down and compressed-air systems sealed.

Everything counts, every single thing, and every one of us can make a differ-ence. That is the central message. And the related potential is indicated by a second series of motifs. This breaks down consumption according to site. 815 tonnes of waste are produced annu-ally by the plant in Bergheim – that is equivalent to a tennis court full of rub-bish that would reach a height of 28 me-

The Vaillant Group checks everywhere to see if there is scope for improvement. It motivates all employees to take the initiative and contribute their own ideas on conserving resources. The projects vary widely but the sustainability effect can be considerable.


Customer forums shown in a new lightCustomer forums shown in a new lightThroughout Germany, the lighting for Throughout Germany, the lighting for exhibition walls in Vaillant customer exhibition walls in Vaillant customer forums is now based on energy-saving forums is now based on energy-saving

LED technology.

Energy efficiency in productionAt the Vaillant Group plant in Remscheid, waste heat from the powder coating system is used efficiently. Thanks to a new heat exchanger, the energy can be put to uses

such as heating the water for the changing room showers.

State-of-the-art TechnoCargo fleetState-of-the-art TechnoCargo fleetIn Germany, two thirds of the fleet belonging to In Germany, two thirds of the fleet belonging to logistic service provider TechnoCargo, a joint logistic service provider TechnoCargo, a joint logistic service provider TechnoCargo, a joint venture between the Vaillant Group and Fiege, has been converted to comply with the Euro 6

emissions standard. The entire fleet of vehicles emissions standard. The entire fleet of vehicles emissions standard. The entire fleet of vehicles will be brought up to this level by 2016.will be brought up to this level by 2016.

from recycled materials. The impact is massive, enabling savings of more than 130,000 kilograms of wood or almost 4,400 trees – in just one year.

In addition to using different paper, em-ployees are also called upon to think twice about whether a print-out or a photocopy is really necessary. 150 displays act as a reminder of just how many of our resources are devoured by twelve million sheets of paper and what these abstract numbers actually mean. For example roughly 200,000 kilograms of wood and 3.5 million litres of water. The displays will be set up next to all our copiers and printers.

this gives each and every one of us a better understanding and makes us more aware that we too are responsible for conserving resources.

Employees48

EMPloyEES

raising our profile as an

attractive employerTailored

employee development programmes

reduction of accidents at work through the

introduction of a management system for occupational safety

Diversity management

Integrity and compliance

Employees 49 s uSTaInaBIlITy In

e nVIronMEnT

e MPloyEES


s ocIETy

SUSTATAT INABLE

AND

PRO

FITATATB

LE

GR

OW

TH

Environment


Employees

SocietyVision

and values

Employees50

Fun with the hare: the logo animal of the green brand is a natural must in the Hoppelhasen childcare centre.

Employees 51

The Hoppelhasen childcare centre (“Hopping Bunnies”) opened in remscheid in october 2013 and offers facilities for up to 30 children to play and develop. The Vaillant Group has invested considerably to provide its staff with an excellent childcare centre for their children that is close to their workplace.

HoPPElHaSEn cHIlDcarE cEnTrE

A centre for children

“The former two-hour journey by public transport before I was at my desk, now takes only 35 minutes.”

The needs analysis for a company-run childcare facility in 2011 already indi-cated that proximity to the place of work was one of the most important criteria, reports Brigitte Kruse, Head of Sus-tainability Management at the Vaillant Group. “Long, flexible hours and child-care during the holidays were also im-portant to our employees.”

The Hoppelhasen childcare centre is open daily from 7 a.m. to 5 p.m. includ-ing during the school holidays. It only closes between Christmas and New Year, when the company is also closed. The centre is aligned to the require-

ments of the staff, but above all to the needs of the children. 30 little hopping bunnies from six months to six years can be looked after at the centre.

To create the centre, a former nursery underwent months of complete con-version and extension. The building is now light and the two groups of 15 children each have two rooms as well as a sleeping area. The centre also has a large room for activities and the young-est children can be changed in a gener-ously sized separate hygiene area. The conversion was monitored by a team from Vaillant Group Real Estate Man-agement, headed by Robin Frohn. The Vaillant Group invested roughly half a million euros in the conversion.

W hen Sanja Preis leaves the Hoppelhasen childcare cen-

tre just before 8 a.m., she knows: “My daughter is in good hands. I can go to work feeling reassured.” The childcare centre is only a five-minute walk from the Vaillant Group head office in Rem-scheid. “Distances are short. I know that if anything happens, I can be with Aaliyah in a few minutes,” says the young mother and Secondary Market Research Manager at Vaillant.

The proximity to her place of work was an important issue. Before the childcare centre opened in October 2013, Preis used to take her daughter, who is now 1 1/2, to her grandparents. This involved a journey right over to the other side of Remscheid and then back again to work.

Employees52

its worth, says Sandra Suhr. “It’s love-ly to see the older children helping the younger ones and to witness how proud they are of what they’ve done.”

Now, just before lunch, which is pre-pared with local and seasonal products, it’s time to take off coats, freshen up and wash hands. A small fleet of vehicles is waiting for the children in the hallway, which they nimbly jump on to. Aaliyah has brought three stones inside which she shows Sandra Suhr. She quick-ly finds out that Aaliyah wants to take them home with her, and puts them on her shelf in the cloakroom.

“My daughter has now developed into her very own confident person,” says Preis. Being at the centre does her good. “She brings a lot back home: songs, games, rituals. And she likes going to the centre on Fridays too, even though I have the day off.” Aaliyah loves mu-sic, says her mum. The preschool music educa-tion programme that is offered is therefore just right for Aaliyah.

The teachers are always developing new ideas. Two small photo books in the foy-er document them. “It’s important for us that the parents see what we do with their children,” explains Suhr. Aaliyah can be seen in one of the photos. Cov-ered from head to toe with white foam, she is inspecting her arms. “We no-ticed that when the children wash their hands, they love splashing about and exploring this tactile experience. So one

day we let them explore it to the full,” says Suhr. The waiting area for parents also offers them somewhere to talk – to other parents or to the teachers. “They take the time to tell us about the day,” says Preis. Knowing what the children have been doing helps reassure parents.

Before Sanja Preis went back to work after a year’s maternity leave in June 2013, she often wondered if it was the right decision. “I always said to myself that I would stay at home for two years with my second child,” she remembers. “But I wouldn’t do it any other way now because I can see that it does my daugh-ter good.”

“If the provision of an excellent child-care service helps parents return to their jobs quickly, then the company benefits too,” says Samantha Stella, Head of Per-sonnel Development Germany. “Qual-ified employees are therefore on leave only for as long as is really necessary.” An improved work–life balance is one of the objectives of the S.E.E.D.S. strate-gy within the focus field of employees. “Thanks to the childcare centre we’ve got considerably closer to achieving this goal,” emphasises Brigitte Kruse, who has been involved in setting up the centre together with Samantha Stella.

A local organisation called Kita|Concept was chosen to run the childcare centre because of its impressive educational approach. Kita|Concept also handles many administrative tasks. “It was im-portant to us to ensure that the teaching staff in the centre are able to concen-trate on the children,” explains Kruse.

So now, while Sanja Preis is working at her desk, Aaliyah is having fun discover-ing the bird’s nest swing in the outdoor play area with nursery teacher Susanne Goll. In the garden, nine children are running, swinging, digging or climbing the tower and sliding down the adja-cent landscaped hill. “We’re outdoors every day. The children love it. There’s only been one day when we’ve not been able to go out so far: because of a storm warning,” explains Sandra Suhr, Head of the childcare centre.

Together with two colleagues, she cur-rently looks after ten children. The second group will open in August with another 20 children joining the cen-tre – and, of course, three more nurs-ery teachers. Being such a small group, the children soon got used to their new surroundings in October. “The teachers were very cautious during the first phase – especially with the parents,” explains Sanja Preis with a laugh. The groups are set up as “family groups”, which means the younger children play together with the older ones. This concept has proved

The establishment of the childcare centre marks a key milestone in creating a good work–life balance.

Employees

The childcare centre’s logo was designed by a Vaillant employee

and selected within the scope of an internal competition.

Employees 53

Together: the children enjoy role plays in the shop. Outside, little builders are at work in the sand.

The Hoppelhasen childcare centre teaches

children about the responsible use of resources from an

early age.

Natural: the outdoor area has also been redesigned and invites children to play, run around and discover new things.

Employees54

EMPloyEE SurVEy

Keeping up with staff opinions

S.E.E.D.S. has clearly defined the aim: the Vaillant Group wants to be the employer of choice. Trend surveys completed by employees

every six months highlight any problems that stand in the way. The Vaillant Group Netherlands already has reason to celebrate in

this regard: it won the award “Best Workplaces 2014”.

ymous basis of course. The Great Place to Work survey involves 20 standardised statements which participants can agree or disagree with according to a five-level scale. There are also two open questions, in which employees can express praise or, far more importantly, criticism.

After just three surveys, it has already been possible to identify initial trends. According to the employees, the Vaillant Group’s strengths lie in the fact that they are proud of what they do, that new employees are warmly welcomed to the company and that they feel they can achieve something. On the other hand, employees are critical of the work–life balance, a lack of recognition for their achievements and the management style. Here, they would like to see improve-ments and have greater involvement in decision-making processes.

“Great Place to Work provides bench-marks that we can use for guidance. However, the evaluation is not simple,” states Frank Liebelt. Group HR prepares the results of the surveys and the region-al HR staff and managers interpret them.

Where good results have been achieved, the countries can be assessed more closely by the research and advice insti-tute in the form of a culture audit and apply for the “Best Workplaces” award. To this end, further statistical informa-tion is collated about the company, such as the number of hours spent on contin-ued professional development. Ques-tions are also asked about all key aspects of HR work.

The Vaillant Group Netherlands is the first sales company to have received the award. From a Group-wide perspective, however, there is still a fair way to go to achieve the benchmark of 77 per cent. In 2013, the Vaillant Group scored 56 per cent in the Great Place to Work index. “It goes without saying that the size of the company and the sector-specific fea-tures play a role,” comments Liebelt. “Great Place to Work now provides us with a tool to show us what we need to work on within the Group and in the spe-cific countries.”

T he delight in the Netherlands was tangible: on its first attempt, the

Vaillant Group Netherlands won the prestigious award “Best Workplaces 2014” from Great Place to Work, an accredited institute for measuring and improving the attractiveness of work-places. Robert Brandon, Country Direc-tor for the Netherlands, and Marjon Sanders, HR Manager in the Nether-lands, agreed: “We are delighted on behalf of the entire Vaillant Group and extremely proud of the employees who regard us as a Great Place to Work.”

The Vaillant Group has had Great Place to Work conduct six-monthly trend sur-veys since the start of 2013. “Great Place to Work has gained a high level of acceptance and the surveys are well- received by the employees, enabling us to take stock of where we stand,” explains Frank Liebelt, Vaillant Group HR Director.

A representative random sample of 20 per cent of employees from all countries and departments is invited to take part in each survey – on a voluntarily and anon-

Employees 55

“Be aware that we are working with people”

Ms richmer, in the trend surveys by great place to work, there is clear criticism of the management style. how can managers respond to that?

The Great Place to Work surveys provide us with an initial direction and are therefore helpful. on the other hand, managers often find it different to derive specific actions from the results as the

reports cover different departments and the statements are therefore not always clear-cut. However, the managers naturally want to address criticisms and are asking for tools to help them do so. For

example, managers can conduct workshops with their teams to discuss causes and develop improve-ments. In the future there will also be further 360-degree feedback reports based on the values of the

Vaillant Group Spirit corporate culture.

an important milestone with regard to personnel development was the introduction of the management development concept myway. what is the current status of that?Since September 2013, we have held eight myWay training courses with almost 80 attendees. The feedback from the management staff has been extremely good. Many of them welcomed the unconventional training approach and practical orientation. over the next three years, we want to use myWay to offer professional development to every one of our roughly 650 M-level managers with training courses specific to their manage-ment paths. Management development programmes can also be used to help prepare staff to take over new managerial responsibilities. The idea behind myWay is that all managers throughout the Group can access the same, stable pool of management tools.

the company’s multinational structure makes that a real challenge. how can personnel development be managed group-wide?We are currently establishing and introducing personnel development processes in many areas – all supported by IT systems. For example, the results of the personnel development plan or PDP are to be linked with the talent management processes. Personnel development is a sustainable topic that must be

approached from a long-term, systematic perspective. Too little attention was previously paid to this at the Vaillant Group. We must persist in this area and be aware that we are working with people who

change, just as the world around them changes.

interview with

Hilke richmer,Head of Group Hr Development

Management level

Management paths

Managing Directors

M1

M4

M3

M2

Experts leaders Projectmanagers

Employees56

Dual success: Dr Jochen Wriske once again won first prize in the

second S.E.E.D.S. award.

S.E.E.D.S. aWarD

The ideas competition

2013 marked the second Vaillant Group S.E.E.D.S. award, which honours the best ideas on the topic of sustainability within the four focal areas of Vaillant’s S.E.E.D.S. programme. The latest competition saw a clear rise in interest compared with the first award in 2011 which attracted 40 sub-missions.

Employees 57

T his second S.E.E.D.S. Award re-ceived 60 entries from Vaillant

Group staff. Many have already been put into practice, while others are well on their way. The ideas came from all departments and divisions within the Group, highlighting the level of creativi-ty and commitment among our work-force. Awards were given to honour the three best ideas in the four focal areas: Development & Products, Environment, Employees and Society.

A preselection was made by the Sustain-ability Management team, bearing in mind four criteria: innovative potential, transferability within the Group, cost savings, and contribution to sustainabil-ity goals. The jury, which comprised the relevant Divisional Managers and Group Directors, then met for the second and decisive round. A small award ceremony was held for the twelve winning teams, who were thrilled to receive their acco-lades.

Life-long learningWithin the context of the myChoice programme, employees in Remscheid can enhance their skills in their spare time, independent of their professions – individually and free of charge, choosing anything from language

courses to soft skills training.

Top marks for HR in SkalicaTop marks for HR in SkalicaFor the second year in a row, the For the second year in a row, the Vaillant Group plant in Skalica has Vaillant Group plant in Skalica has Vaillant Group plant in Skalica has been awarded the title “Leading HR

Organisation 2013”.

Successful: from 60 entries, awards went to the best three

in each S.E.E.D.S. focus field.

Freetime activities

Healthy eating in Nantes Healthy eating in Nantes The canteen at the Vaillant Group plant in Nantes now serves organically-certified food. A staff survey indicated that employees would like to eat healthier and with a greater sense

of responsibility.


Small change, big impact

Dr Jochen Wriske is no stranger to commendations. He and a team of eight colleagues who work in Germany, France and

Slovakia won the first prize in the Development & Products category with a project entitled “Increasing the efficiency of condensing boilers by reducing the volume of minimum water circulation”.

The multinational team succeeded in making overflow valves redundant in condensing boilers. This is particularly relevant in spring and autumn when the need for heat is lower and when counterpressure in the system therefore increases. This pressure difference needs to be overcome by the heating pump, which consumes a lot of energy. At the same time, some of the water no longer circulates within the unit but flows back directly via the overflow valve. This water from the overflow valve, however, leads to a higher entry temperature in the heat exchanger, which substantially reduces the condensation effect. In other words, resources were not being optimally used.

The team succeeded in adjusting the pump performance to reflect the prevailing demand for heating water at any one time, thus also reducing the use of resources. Thanks to smartly combined sensors, the system identifies the state of the heating unit in good time, making the overflow valve superfluous. As a result, the entry temperature of the water flowing into the heat exchanger is also reduced and the condensation effect is optimised.

This change enables a typical one-family household to save around 160 kWh per year. “This may only constitute a small percentage of a domestic heating bill, but because of its large quantities, condensing technology has enormous leverage, meaning we also bear a great deal of responsibility as developers,” says Wriske. A bit of rethinking is well worth it. “The team is now highly motivated, especially as they’ve realised that they can really make a difference.” This constructive change went into serial production with the gas condensing systems ecoCOMPACT and auroCOMPACT in the first quarter of 2014.

The team leader, who had previously won a S.E.E.D.S. Award with a project in 2011, was elated, as was his team. “This award shows a great recognition of our work,” says the engineer. He is already looking forward to the next competition.

Wide-ranging and strategic

social commitment

at all company locations (cSr)

open dialogue with stakeholders

commitment to the united nations

Global compact

Public education on

environmental and climate protection

SocIETy

Society58

Society 59 s uSTaInaBIlITy In

e nVIronMEnT

e MPloyEES


s ocIETy

SUSTATAT INABLE

AND

PRO

FITATATB

LE

GR

OW

TH

Environment


Employees

SocietyVision

and values

Society60

SOS Children’s Villages: the children’s aid organisation offers homes to more than 60,000 boys and girls around the world.

Society 61

SoS cHIlDrEn’S VIllaGES

Five pillars for vitality

What started out as a small scale project in the Hungarian town of Battonya in 2011 has now gotten bigger. A spontaneous act of aid by colleagues has become a strategic partnership. The Vaillant Group is actively engaging in SOS Children’s Villages Worldwide at locations where it is also active as a company. Strategically, reliably and whole-heartedly. On the following pages we will explain how the partnership came about and what goes into it. This year’s report will also feature information on our activities in France. In the years to come, examples from other countries will follow, as this partnership is set up for the entire Group and for the long haul.

Hand in hand: in summer 2013, the Vaillant Group signed a long-term

cooperation agreement with SoS children’s Villages Worldwide.

Society62

Helping to grow: the Vaillant Group wants to use its commit-ment to improve the children’s living conditions.

Society 63

The first, technical column thus quickly gave rise to the second – spending time with the children. In the meantime a number of further initiatives involving SOS Children’s Villages have been planned: one member of staff would like to organise an archery session, another wants to invite the children to a race-car track. Whether someone wants to share their passion and introduce the children to their hobby, organise a trip or share their knowledge – a great deal is possible

and our colleagues enjoy coming up with new ideas.

“It is really important to us that we help the teenagers in the villages gain a foothold in the world of work. This is our third column,” says Alexandra Deschamps. This spring, the SOS Chil- dren’s Villages were also invited to an open day at the Nantes plant. The children were mesmerised by the manu-facturing processes and machines.

S olid and long-term, precise and professional, creative and passion-

ate – attributes of the partnership between Vaillant France and the SOS Children’s Villages. “We wanted to give our partnership a broad foundation and have therefore established it on the basis of five ideas,” explains Alexandra Deschamps, Corporate Communications Manager. Providing efficient heating technology plays a central role.

“Besides this, we want to spend time with the children, help them gain a foot-hold in the world of work, support SOS Children’s Villages through sports initia-tives and mobilise our partners – skilled tradesmen, wholesalers and suppliers – to do the same,” explains Deschamps, who is now also in charge of coordinat-ing the activities for SOS Children’s Villages. “It is really rewarding, mainly because colleagues are just so enthusias-tic about it.” A regular newsletter keeps all members of staff up to date on the partnership; at the end of the day, all colleagues should feel that the compa-ny’s partnership is also their own. The motto of the newsletter is therefore: This sponsorship – it is ours, it is yours.

The French partnership was agreed upon together with the Group-wide partner-ship in summer 2013. The first heating devices were installed the same year; by the end of this year we expect to have installed 20 devices. In December 2013, Salim Nadifi-Guelon, Vaillant Sales Representative, discovered how the core purpose of the partnership – providing efficient heating technology – could be developed to make an even greater dif-ference. After organising the installation of eight heating devices at the SOS Chil-dren’s Village in Carros, he quickly decided that our aid cannot stop there and without a second thought invited the children to a festive bite to eat. “On a human level, this was a very rewarding experience. The children were really excited,” he explains. “Through this per-sonal involvement I can fully identify with our sponsorship.”

“140 years of responsibility for the world of today and tomorrow” – the slogan for the company anniversary simply comes as standard. Within the scope of its anniversary, Vaillant is using two campaigns to collect donations for SoS children’s Villages.

Firstly, an anniversary road show will travel through Europe stopping at more than 20 sites. on board will be an exhibition that not only focuses on the past and present but also looks 140 years into the future. In the Vaillant Future Studio, people are asked for their visions of 2154 – how life in the cities, mobility, the co-existence of different generations and living conditions will develop. For all visions received, Vaillant will make a donation to SoS children’s Villages.

Earlier in the year, the anniversary was also celebrated through the use of sport with the Vaillant World cup, the Group’s inaugural Football World cup, in Dortmund from 23 to 25 May, shortly before the official World cup in Brazil. over 200 players from 17 countries took to the pitch to compete for the title of Vaillant World champion – and to raise money for SoS children’s Villages. Every goal was rewarded with a donation.

Actively supporting SOS Children’s Villages: jumping in feet first while still using our heads

Society64

Ten-year-old Lucas was particularly im-pressed – after all, he wants to be a fork-lift truck driver when he grows up. The open days can therefore be used to give an initial taste of professional life.

But our involvement is not destined to stop there. “We want to incorporate all areas – sales, service, manufacturing and administration – to be able to put our expertise to good use. Our colleagues from Human Resources want to help the children prepare their application docu-ments; we want to offer internships and training courses. And preferably not just with our company. We are also trying to bring on board our partners from the respective associations, subsidiaries, suppliers and skilled trades,” says Deschamps. Incorporating them into the sponsorship is our fourth column. Initial steps have already been made. The cus-tomer engagement programme “Clubs de fidélité Saunier Duval” offers partici-pating skilled tradesmen to donate some of their customer loyalty points to the SOS Children’s Villages. Alexandra Deschamps is also currently gathering new ideas on how partners can be tied into the sponsorship in practice.

Another highlight relating to the fifth col-umn has already taken place – supporting SOS Children’s Villages in sports events: on 29 June, more than 40 members of staff and their families took part in a run around the Palace of Versailles as part of the “Go Sport Running Tour”. A donation was made for every kilometre run and all participants were given a T-shirt with the logos of Vaillant, Saunier Duval and, of course, SOS Children’s Villages. “It was a fun family event in front of a huge audi-ence,” says a delighted Alexandra Deschamps. “We are really pleased with the enthusiasm of all participants. Some of our colleagues even brought their children to run along for the good cause.”

Because this is what matters: experienc-ing and supporting the sponsorship. By the management through structures, initiatives and assistance; by the staff with heart and soul.

interview with

Frederik lippert, Vaillant Group Sustain- ability Manager

Mr lippert, how did the partnership between the Vaillant group and sos Children’s Villages worldwide come about?It all began in Hungary. In autumn 2011, the heating system broke down in the SoS children’s Village in Battonya. our Hungarian colleagues respond-ed quickly and organised everything. The project went extremely well – for both the SoS children’s Village and ourselves. at the time, we were also on the lookout for a flagship social responsibility project. on seeing the report from Hungary, we realised that we had taken the first step towards something much bigger. after several internal discussions, we had a number of meetings with the children’s aid organisation to establish the foundations for long-term cooperation and agree upon joint goals. In the end, we entered into a five-year agreement.

how does the partnership fit in with the Vaillant group’s Csr strategy?our strategy defines target groups, fields of action and tools. as a family business, the Vaillant Group consciously focuses on families as well as educa-tional and social institutions. Furthermore, all cooperative and funding projects have to meet binding eligibility criteria. In our core business, we can provide support with our products and expertise so as to specifically promote climate and environmental protection. SoS children’s Villages and the Vaillant Group go together perfectly.

what exactly does the partnership entail?The partnership is based on two pillars. The first of these is a Group-wide licence that makes us the number one partner for providing free heating tech-nology. The individual sales companies work on implementing local projects, which also centre around heating technology. However, we can also offer other forms of support as a second pillar. We don’t want to provide a mere “flash in the pan”, one-off commitment but to use well-established technological support to create the foundations of a long-term partnership.

in what way?Hungary is again a good example here, where the young people are offered apprenticeships which are supported by our colleagues. In other words, they support the children further. a few ideas have also been introduced in France. There is a whole array of support services that we can provide with our expertise. This is the responsibility of the individual country managers.

to what extent has the partnership developed to involve the entire Vaillant group?We are extremely pleased with the way the partnership has developed. The project is still in its early days as the agreement was only entered into in august 2013. This year, china, Poland and romania will play active roles. ukraine has already started implementing things and Hungary is planning its second pro-ject. In Germany, funding projects are currently in the planning stages. We are finding that the spirit of Battonya is being borne by the whole company.

this was a strategic decision. what role do the employees play in the matter?When it comes to social responsibility, the employees play an extremely important role. Firstly, we want to use such activities to further improve our attractiveness as an employer. Serious social responsibility is a recruiting factor. Secondly, however, such activities are impossible without passion and com-mitment from the employees. We have noticed that the partnership has been extremely well received by the staff, who actively support it, including through personal commitment. For example, by a country manager asking for donations to SoS as a birthday present and a purchaser privately supporting a sponsored child at SoS.

“SOS Children’s Villages and Vaillant go together perfectly”

Society 65

Season’s greetings: the Vaillant advent calendar is traditionally decorated with children’s drawings. This year, it will be designed by children from the SOS Children’s Village in Sauerland, Germany.

other aCtiVities in 2013 Down to the very last detail

Staff at Vaillant have provided voluntary value management training to people employed by the city of Remscheid. The idea was to improve administration

processes in this city in Bergisches Land.

High tech for a good causeVaillant has donated three highly efficient combined heat and power ecoPOWER systems to non-profit organisations in and power ecoPOWER systems to non-profit organisations in Germany. All participants were able to win points in an online game and give them to a social organisation. Each of the three organisations with the most points then won a CHP unit.

Lively partnership: many employees, such as Simone Rockenfeller, are also privately committed to SOS Children’s Villages.

from: rockenfeller, Simonesent: Friday 13 December 2013 08:04to: lippert, Frederiksubject: SoS children’s Villages

Good morning Mr lippert,

It was with great joy that I spotted the display in the canteen advertising Vaillant’s support of SoS children’s Villages. Just two weeks ago, I visited my sponsored child in the SoS children’s Village in Mombasa. as always, I took many gifts with me – this time including the Vaillant hare of course. He is now looking after the kids.

Have a lovely weekend. Best regards,

Simone rockenfeller - VGP-S - Group Buyer

Vaillant group

Responsibility in the supply chainResponsibility in the supply chainThe Vaillant Group sources 100 per cent The Vaillant Group sources 100 per cent of its purchase volume from suppliers who of its purchase volume from suppliers who of its purchase volume from suppliers who adhere to the Ten Principles of the UN adhere to the Ten Principles of the UN Global Compact.

Full commitment: sports events are part of the French

support programme. support programme.

Five pillars for a child’s smile: the partnership in France has been devised in great detail.

Principles of reporting66

PrIncIPlES oF rEPorTInG

report section page Collected gri indicators global Compact principles

Foreword 3 1.1, 4.11, 4.12 8

The Vaillant Group introduces itself 4–9 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, 2.9, 4.1, 4.2, 4.4, 4.6, DMa-Ec

Sustainability strategy 10–19 1.2, 2.9, 3.5, 4.1, 4.7, 4.8, 4.9, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, En14, En16, So3, So5, Pr1

8,9

Interview with Dr carsten Voigtländer 21 1.1, 1.2, 2.10, 4.11, 4.12, 4.8, 4.9

s.e.e.d.s. magazine 22 2.10

Development & Products 26–39 2.10, 4.11, 4.16, 4.17, DMa-Ec, DMa-En, DMa-Pr, Ec2, En6, En7, En18, En26, Pr1

7, 8, 9

Environment 40–47 2.10, 4.11, En4, En5, En6, En7, En18, En26 7, 8

Employees 48–57 2.10, 4.7, 4.8, DMa-la, DMa-Hr, Ec3, Ec8, la10, la11, la12

6

Society 58–65 4.8, 4.12, Ec8, Hr1, Hr2, Hr3, DMa-Hr, DMa-So, So1

1, 2, 3, 4, 5, 6, 7, 8, 9

Principles of reporting 66–67 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 4.12, 4.14, 4.15, 4.16, 4.17

7

Sustainability key figures 68–73 2.7, 2.8, 3.9, 3.10, DMa-Ec, Ec1, En3, En4, En5, En6, En8, En9, En21, En22, la1, la7

8

Prizes and awards 75 2.10

Imprint 76 3.4

online version with detailed comments 10

Principles of reporting 67

This Sustainability report, the sixth of its kind since 2009, provides comprehensive and transparent information about the alignment of our company with the guiding principle of sustainable, responsible business practices.

scope of the reportThis report contains information about the stra-tegic direction of the Vaillant Group’s sustaina-bility management. The report discusses central developments in the S.E.E.D.S. programme’s four fields of focus. The report’s contents cover the Group’s achievements and challenges with regard to sustainability performance. as such, the report presents a cross-section of the company as a whole. Its target readers include Vaillant Group customers, partners, suppliers, employees, owners, media rep-resentatives and other interested stakeholders.

Materiality and inclusion of stakeholdersWhen we were planning the report’s contents, we took into account feedback from different groups of stakeholders gathered from various forums for dialogue. To define the material sustainability topics for our business activities more precisely, last year we conducted a systematic survey of internal and external stakeholders for the first time. The materiality matrix in the “Sustainability strat-egy” section summarises this materiality analysis, which dealt with the question of what significance the Vaillant Group and its stakeholders assign to certain topics.

The findings listed not only give rise to the content of this report, but also play an integral role in the future development of the Vaillant Group’s sustain-ability strategy. regular alignment will now occur within the scope of the annual strategy review. The findings also enable us to communicate with our stakeholders more systematically.

reporting period and data collectionThe last Sustainability report was published in 2013. The reporting period for all of the key perfor-mance indicators in the current report covers the calendar year from 1 January 2013 to 31 December 2013. The editorial deadline for reports on matters related to sustainability was 31 May 2014.

all production-relevant figures relate to the Vaillant Group production plants in six European countries and china. Figures were collected via a written sur-vey filled in at our main sites and managed central-ly. It should be noted in regard to the key indicators presented at the end of the report that they concern both absolute and relative figures. This allowed us to account for all factors feeding into them, e.g. expansion of our productive capacity.

global reporting initiative (gri)our reporting on the Group’s sustainability perfor-mance has been adapted to the Global reporting Initiative’s internationally recognised standards (GrI, www.globalreporting.org). you can download a detailed content index of the GrI indicators on-line at www.vaillant-group.com. GrI-G3 application level “B” matches up with our internal assessment. an external audit of the Vaillant Group’s GrI reporting has neither been carried out nor is on the agenda.

global CompactThe Vaillant Group is a member of the un Global compact. This report includes accounts of the pro-gress we have made in our efforts to implement the pact’s Ten Principles (communication on Progress). The adjacent table shows where in the report we make reference to the principles found in the Global compact. you can find an in-depth overview on our initiatives in this area, updated annually, at www.vaillant-group.com.

print and online The report has been published in German and English. Further to the hard copy, a PDF version is also available at www.vaillant-group.com. In case of doubt, solely the German version published in printed form is binding.

Sustainability key figures68

SuStainability key figureS

–38%new technology in Production departments and the test centres has already enabled us to reduce our water consumption by more than a third.

10 1211 13

96 979595

Rate of recycling%

–1 %

10 1211 13

762,284

475,058

611,809

Water consumptionm3

–38%

10 1211 13

17,264 16,91516,077

Wastet

–7 %

17,928

686,556

Sustainability key figures 69

–38%new technology in Production departments and the test centres has already enabled us to reduce our specific water consumption by more than a third. –9%

10 1211 13

179.7

163.0

177.2186.0

total energy consumptionGWh

–9%

Thanks to consistent energy management and a bundle of individual measures, we are continually reducing our overall energy consumption.

–19 %

10

459,571

1211 13

oil consumptionl

389,914370,971

459,016

The Vaillant Group lists key figures relating to sustainability on an internal scorecard

so we can manage our activities in this field. as we are constantly working to improve

the quality of data and make our figures more meaningful by successively expanding

their scope, changes may have been made to the previous year’s figures since the

publication of last year’s report. The percentage development specified relates to the

reference year 2010.


–19%–12%

In 2010, we set our target as a 20 per cent reduction in electricity consumption. We already achieved a 12 per cent reduction by 2013.

10 1211 13

75.3 74.6

66.4

electricity consumptionGWh

–12%

71.5

10 1211 13

100.8

92.8

102.0107.4

gas consumptionGWh

–8 %


–19%The number of occupational accidents is falling. The total number of accidents in several plants has been reduced to almost zero.

–12%In 2010, we set our target as a 20 per cent reduction in electricity consumption. We already achieved a 12 per cent reduction by 2013.

10 11 12 13

accidents at workper 100 employees

2.1

2.52.6

1.7

–19%

10

12,423 12,166

1211 13

employeesHeadcount

12,07012,106

–3 %

10 11 12 13

Management positions filled internally

57 5658

60

+5 %


+6%In 2013, efficiency technologies and renewable energies once again made up the largest share of the Vaillant Group’s product sales.

Great Britain

100

SwitzerlandScandinavia netherlands

86.1

99.7

93.5

Markets with the greatest share of renewable energies in sales%

2,381

10 1211 13

57.361.0

58.3

efficient/renewable technologies – share of overall sales%

+6%

57.9


+6%

10 11 12 13

0

100

32

global CompactThe Vaillant Group signed up to the un Global compact in october 2011. our target to assign 80 per cent of our total purchase volume to sup-pliers that recognise the Ten Principles of the un Global compact was reached as early as 2012. We have now gone one step further and already managed to meet the next target – 100 per cent – which was originally set for 2020.

The Vaillant Group is still experiencing growth. The company recorded its second highest sales figures in company history and a clear increase in earnings.

un global Compact purchase volumes%

80

*€186 million after exceptional items

2,381

10 1211 13

2,3142,3812,331

salesin millions of euros

2,276

10 12*11 13

222211

ebitin millions of euros

177

204

millioneuros

We are increasingly using the internet to distribute this report. and the printed

edition follows all the principles of sustainable production that one might think of.

The paper is made 100 per cent from recycled material and has been given the

eu ecolabel, blue angel certification and fsC approval. The inks and all other

consumables such as printing plates are either based on renewable raw materials

or are recyclable. our printing contractors use green electricity and reuse the

heat from the printing machines for heating purposes. Moreover, we save further

resources by also publishing a condensed sustainability brochure which is

specifically intended for our customers.

a SuSTaInaBIlITy rEPorT WHIcH DESErVES ITS naME

Sustainable printing74

Prizes and awards 75

carbon neutralnatureOffice.com | DE-149-660882

print production

published byVaillant GmbH Berghauser Straße 4042859 remscheidGermany

[email protected]

VGc corporate communications, Sustainability Management & PoliticsPhone +49(0)2191/18-2754Fax +49(0)2191/18-2895

designgerlach&partner, cologne

photosalex Buschor, uli Deck, Michael Egloff, Bernd Gabriel, Horst Gerlach, Bruno Helbling, Gerti Hoxha, Katerina Ilievska, iStockphoto, Mike König, Marko Maegi, Mario Pavlovic, photorunning.fr, rené Schmid, John Snowdon, Vaillant Group

illustrationsTobias Dahmen

printingKunst- und Werbedruck, Bad oeynhausen

www.vaillant-group.com [email protected]

ResponsibiLiTY as a p RincipLe - Vaillant Group€¦ · s u s t a i n a b l e a n d p r o f i t a b...

Documents

Transcript of ResponsibiLiTY as a p RincipLe - Vaillant Group€¦ · s u s t a i n a b l e a n d p r o f i t a b...